$2.3 billion! TE Connectivity announced a large acquisition
TE Connectivity said it will acquire Richards Manufacturing Co, a manufacturer of utility grid products, for approximately $2.3 billion in cash in an effort to strengthen its position in the electric utility market and take advantage of the surge in electricity demand. The transaction is expected to close in June.TE expects the acquisition to boost its sales growth. After the transaction is completed, Richards Manufacturing's business will become part of TE's Industrial Solutions division and is expected to contribute approximately $400 million in annual sales.
TE CEO Terrence Curtin said: "The acquisition of Richards Manufacturing fits our strategy and enables us to further capitalize on the accelerating grid replacement and upgrade cycle in North America."
TE Connectivity expects that by integrating complementary product portfolios and leveraging the experience of Richards Manufacturing, the transaction will enhance its position in serving North American electric utilities, enabling the company to benefit from the trend of underground power grids. The accelerated grid replacement and upgrade cycle presents a huge market opportunity as North America's infrastructure ages, grid reinforcement needs increase, and upgrades are required to meet the growth in energy demand.
As companies race to develop and adopt artificial intelligence, data center demand for electricity is accelerating and is expected to double in five years, from 176 TWh in 2023 to between 325 and 580 TWh in 2028. In addition to aging infrastructure, extreme weather events and the pursuit of green energy have also prompted the need to upgrade and be more resilient to the grid system.
As a world-renowned connector and sensor company, Tyco Electronics (Richards Manufacturing) operates in about 140 countries. Its products are widely used in many fields such as automobiles, data transmission systems, consumer electronics, communications and enterprise networks, aerospace, defense and ships, medical, energy and lighting.
Richards Manufacturing is headquartered in Irvington, New Jersey, USA. It mainly produces overhead and underground electrical and gas distribution products and is a supplier focusing on public grid products. It is a leader in the field of underground power distribution equipment, especially in medium-voltage cold shrink cable accessories and network protector products. It has a unique market position and is a first-class supplier of public grid products.
